Assume that in addition to estimating its ending inventory by the retail method, Harmony Co. of Exercise 6-13 also took a physical inventory at the marked selling prices of the inventory items at the end of 2023. Assume further that the total of this physical inventory at marked selling prices was $109,200.
a. Determine the amount of this inventory at cost.
b. Determine Harmony’s 2023 inventory shrinkage from breakage, theft, or other causes at retail and at cost.
Round all calculations to two decimal places.

Data From Exercise 6-13

During 2023, Harmony Co. sold $520,000 of merchandise at marked retail prices. At the end of 2023, the following information was available from its records:

Use the retail method to estimate Harmony’s 2023 ending inventory at cost. Round all calculations to two decimal places.

Transcribed Image Text:

Beginning inventory... Net purchases....... At Cost At Retail $127,600 $256,800 231,240 393,600